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Vistra India Update 327

Income Tax

Section 139AA of the Income-tax Act, 1961 as inserted by the Finance Act, 2017 provides for mandatory quoting of Aadhaar / Enrolment ID of Aadhaar application form for filing of return of income and for making an application for allotment of Permanent Account Number with effect from 1st July, 2017. Section 139AA (3) of the Act empowers the Central Government to notify the person(s) or State(s) to which the requirement of quoting of Aadhaar / Enrolment ID shall not apply. Accordingly, the Central Government vide notification dated 11th May, 2017 has notified that the requirement of quoting of Aadhaar / Enrolment ID shall not apply to the following individuals if they do not possess the Aadhaar / Enrolment ID

i. An individual who is residing in the state of Assam, Jammu and Kashmir and Meghalaya.

ii. An individual who is a non-resident as per the Income-tax Act, 1961.

iii. An individual of the age of eighty years or more at any time during the previous year.

The Income Tax Department has made it easy for taxpayers to link their PAN with Aadhaar. Responding to grievances of taxpayers regarding difficulties in linking PAN with Aadhaar their names did not match in both systems (Eg. Names with initials in one and expanded initials in another), the Department has come out with a simple solution now. Taxpayers can go to www.incometaxindiaefiling.gov.in and click on the link on the left pane-> Link Aadhaar, provide PAN, Aadhaar no. and enter name exactly as given in Aadhaar card (avoid spelling mistakes) and submit. After verification from UIDAI, the linking will be confirmed. In case of any minor mismatch in Aadhaar name provided by taxpayer when compared to the actual data in Aadhaar, One Time Password (Aadhaar OTP) will be sent to the mobile registered with Aadhaar. Taxpayers should ensure that the date of birth and gender in PAN and Aadhaar are exactly same. In a rare case where Aadhaar name is completely different from name in PAN, then the linking will fail and taxpayer will be prompted to change the name in either Aadhaar or in PAN database.

Company Law

Companies Acceptance of Deposits Amendment Rules, 2017

Ministry of Corporate affairs has amended the Acceptance of Deposits rules to provide the following:

To exclude from the definition of Deposits, any amount received by a company from Infrastructure Investment Trusts registered with the Securities and Exchange Board of India in accordance with regulations made by it.

To allow the Companies to accept deposits without deposit insurance contract till the 31st March, 2018 or till the availability of deposit insurance product, whichever is earlier.

Customs

Publishing of rate of exchange for conversion of the foreign currency

The Central Board of Excise and Customs (CBEC) vide Notification No. 43 /2017 - Customs (N.T.) notified the rate of exchange for conversion of the foreign currency into Indian currency or vice versa for Export and Import of goods, with effect from 5th of May 2017. The Notification is appended below for reference: